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Newcrest releases FY19 results

Published by
Global Mining Review,


For the year ended 30 June 2019 Newcrest Mining Ltd has reported a statutory profit and an underlying profit of US$561 million, 178% and 22% higher than the prior period respectively, from gold production of 2.49 million oz.

Newcrest Managing Director and CEO, Sandeep Biswas said: “Newcrest achieved very strong results in financial year 2019. We reported our lowest annual AISC per ounce and delivered over AUS$800 million in free cash flow. This strong operating performance was supported by a continued improvement in our safety performance, with a 3% reduction in our TRIFR compared to the prior year.”

“Cadia achieved a record year for production and a record low AISC per ounce. Lihir delivered another year of free cash flow in excess of US$300 million. All our operations were free cash flow positive.” “We continued to invest in growth during the year, gaining exposure to another operating asset, the Red Chris mine in Canada. Our plan is to improve the current operating performance and, subject to drilling and further study, transform Red Chris into a Tier One operation by means of block caving. We also gained access to a promising prospect in the Havieron deposit which, subject to drilling and further study, could considerably improve the profitability and extend the life of Telfer.”

“Our strong operating and financial performance allowed us to further reduce our net debt and strengthen the balance sheet as well as increasing dividends to shareholders, with the full year dividend being 19% higher than last year.”

Safety Newcrest’s safety performance in financial year 2019 continued to improve, with no fatalities and TRIFR decreasing to 2.3 per million hours worked, a 3% reduction compared to the prior year. This marks four consecutive years of TRIFR reduction and almost four years of being fatality-free. The continued commitment and adherence to Newcrest’s Safety Transformation Plan has underpinned this sustained improvement.

Dividend Newcrest’s dividend policy seeks to balance financial performance and capital commitments with a prudent leverage and gearing level for the company.

 

Newcrest looks to pay ordinary dividends that are sustainable over time having regard to its financial policy metrics, profitability, balance sheet strength and reinvestment options in the business. Newcrest targets a total dividend payout of at least 10 - 30% of free cash flow generated for that financial year, with the dividend being no less than US15 cents per share on a full year basis. Having regard to the above mentioned considerations, the Newcrest Board has determined that a final fully franked dividend of US14.5 cents per share will be paid on Thursday 26 September 2019. The record date for entitlement is Friday 23 August 2019. The financial impact of the final dividend amounting to US$111 million has not been recognised in the Consolidated Financial Statements for the year. The company’s Dividend Reinvestment Plan remains in place. Including the interim dividend of US$7.5 cents per share, total dividends in respect of the 2019 financial year amount to US$22.0 cents per share.

To read the full report: https://www.newcrest.com.au/media/financial_reports/2019/FY19_Results_Release.pdf

Read the article online at: https://www.globalminingreview.com/finance-business/16082019/newcrest-releases-fy19-results/

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